Explanation:
a) To find out how much money Daniel deposited in the account, we need to calculate the interest earned in one year.
The interest earned in one year is:
£1524.60 - £1480.50 = £44.10
We know that this interest is earned on the initial deposit, so we can set up an equation:
Initial deposit + interest earned = amount after one year
Let x be the initial deposit. Then:
x + £44.10 = £1480.50
Solving for x, we get:
x = £1436.40
Therefore, Daniel deposited £1436.40 in the account.
b) To find the annual interest rate on the account, we can use the formula:
Simple interest = (principal x rate x time) / 100
where principal is the initial deposit, rate is the annual interest rate, and time is the number of years.
For the first year, we have:
£44.10 = ( £1436.40 x rate x 1 ) / 100
Solving for rate, we get:
rate = 3.07%
Therefore, the annual interest rate on the account is 3.1% (rounded to 1 decimal place).